Metair may invoke ‘force majeure’ over Durban Gateway Terminal crisis

Résumé détaillé

Says it is facing delays approaching 20 days at the port terminal, resulting in production interruptions with vehicle and raw materials arriving late.

JSE-listed automotive supplier group Metair’s shares plunged over 35% on Friday, after the company warned it may have to invoke ‘force majeure’ provisions in its supply contracts due to delays at Durban Gateway Terminal (DGT) reaching “crisis proportions”.

Metair, a major supplier of components to Toyota, Ford, Volkswagen and Isuzu, says it is facing delays approaching 20 days at the port terminal resulting in production interruptions with vehicle and raw materials arriving late. Durban Gateway Terminal is operated by Filipino ports giant International Container Terminal Services Inc (ICTSI).

Read: Transport minister presses ICTSI over Durban port delays Government not backing manufacturers adequately

The terminal was formerly known as Durban Container Terminal Pier 2, before its operations were taken over by ICTSI as part of a joint-ownership or part privatisation with Transnet. It is South Africa’s busiest container handling facility in a port.

According to Metair, the knock-on effect on stock shortages had increased working capital, as more inventory remains in transit and more capital has to be deployed on building up stock supplies to account for the delays.

The company has been forced to make alternative transport arrangements, with higher costs for urgent airfreight and additional trucking requirements.

Durban Gateway Terminal accounts for roughly half of the country’s container traffic.

Management of the terminal was handed over to Philippines-headquartered ICTSI in January this year under a 25-year partnership with Transnet, which retains a 51% stake.

Read: New crisis at Durban port prompts calls for urgent action Durban port deal rescues Transnet from another nasty loss Transnet signs 25-year port agreement with billionaire Razon’s ICTSI Metair completes overhaul with new aftermarket and retail division

Début de l'article, extrait de Moneyweb. Pour lire la suite, ouvrez l'article chez le média.